Days after announcing that Volkswagen will stop developing new-generation combustion engines and focus even more on electric vehicles, the company announced the goal of manufacturing one million electrified vehicles per year in China by 2023.
The brand began series production of the next electric SUVs, the Volkswagen ID.5 and its performance version, the ID.5 GTX, marking the next step in the “Accelerate” strategy, intended to drive the shift to electric mobility.
According to the company’s CEO, Ralf Brandstätter, at the plant that Volkswagen shares with China’s Anhui Jianghuai Automobile Co, the company will produce 300,000 electric cars per year, starting operations in 2023. Coupled with the additional production of two other joint venture company complexes; one with FAW Group and one with SAIC Motor, this should bring total capacity to the 1 million mark.
“In the past, our approach was to develop in Germany and localize in China, but this approach will change significantly by establishing more local resources for R&D, especially for software, to be faster and more independent in China,” Brandstätter said.
Long-term Transformation
Volkswagen’s work to electrify operations has not happened overnight, as €1.2 billion has been invested over the past four years to adapt facilities for production.
Related content: Ford Expands Investment with 20 Billion Dollars More to Accelerate Electrification
To achieve the transition, the manufacturer has carried out measures such as the expansion of workshops, construction of a new logistics building, modernized the facilities to Industry 4.0 and further upgraded automation with more intelligent robots and autonomous transport systems, which bring components to the assembly line without human intervention.
Volkswagen factory in China
In Debt
Despite ambitious goals corroborated by Volkswagen’s China chief Stephan Wollenstein, who said the automaker would like to double sales of their ID battery electric vehicles this year, but warned that shortages on semiconductor supplies could hamper their efforts.
The German giant sold 70,625 of its ID EVs in China last year, far short of target to sell between 80,000 and 100,000 cars, and production was also affected by regional outbreaks of COVID-19.
Written by I Jhonattan González
